Long-term care insurance is an insurance product that helps provide for the cost of long-term care beyond a predetermined period. The insurance product covers care that is generally not covered by traditional health insurance or government-sponsored healthcare programs. Typical individuals who are covered by long-term care insurance may be unable to perform certain activities of daily living (ADLs) such as bathing and showering, dressing, eating/feeding, functional mobility, personal hygiene and grooming (e.g., brushing/combing hair), toilet hygiene, and others. There are various benefits of long-term care insurance, including the ability to cover costly out-of-pocket expenses, potential income tax deduction on premium payments, and the expertise of professional caregivers versus family and friends.
A long-term care insurance policy may cover care in a variety of environments, including home care, assisted living, adult daycare, respite care, hospice care, nursing home facilities, and Alzheimer's facilities. Generally, long-term care insurance can be more costly relative to traditional health insurance because of the complexity and difficulty of some of the services. As a result, there is a need to reduce costs both for the caregiver as well as for the policyholder. In particular, costs may generally be reduced if a policyholder's property is the primary place of care, versus a dedicated facility.
Accordingly, there is an opportunity for platforms and techniques to provide policyholders with various incentives to reduce costs associated with long-term care insurance.